Some like Darren Rowse of Problogger.com would like to think bloggers can make good money off affiliate marketing. I used to think so too, but my belief in the revenue potential of affiliate marketing and blogs is unraveling fast. With the types of readers I attract, I can’t see how I can make anything substantial through affiliate marketing. Affiliate marketing is not for everyone. Let me tell you why.
What is Affiliate Marketing?
Affiliate marketing is really just the online electronic version of the traditional referral/commission system. Hear it straight from Wikipedia’s mouth:
Affiliate Marketing is a widespread method of promoting a website, in which an affiliate is rewarded for every visitor, subscriber and/or customer provided through his efforts. It is a modern variation of the practice of paying finder’s-fees to individuals who introduce new clients to a business. Compensation may be made based on a certain value for each visit (Pay-per-click), registrant (Pay-per-lead), or a commission for each customer or sale (Pay-per-Sale).
E-commerce sites have really embraced affiliate marketing as a legit marketing technique which have powered many a website’s sales growth. Merchants love the system for two reasons:
- Commissions are only paid when a sale, a lead or a click is consummated.
- When they’re not selling, merchants get free publicity via the merchant’s ad/link on the affiliate’s website.
Affiliate systems are usually run inhouse (like Amazon.com) or via third party service providers like Commission Junction.
My Affiliate Marketing Experience
I’ve currently running two affiliate campaigns on Macalua.com. The more obvious one is Amazon Associates. If you’ve read some of my posts, you’ll notice the Recommended Reading portion which informs my readers of books they may want to buy and add to their library. Most of the items featured in this section are from Amazon Associates. For every item I sell, I get commissions somewhere between 4% and 9% of the listed price.
From January 1 to August 27 of this year, I’ve managed to get 307 clicks, 5 items ordered and 2 items shipped. That’s $98.65 worth of merchandise. For that, I got a paltry $3.95 (which I have yet to see).
The other affiliate campaign I run is the Globat web hosting (aff) link on your left which I signed up for through Commission Junction. On paper, the rationale for the campaign appears sound:
- Fits well with my site’s target market: serious bloggers looking to move from a free blog-hosting subscription to a cheap, standalone, value-packed web hosting plan.
- Excellent product. Very nice specs compared to other Philippine web hosting companies. 10 GB disk space/300GB bandwidth/unlimited MySQL databases for less than 5,500 pesos. Real value for money.
The results? Apart from my cousin who was looking for a nice web host, I’ve never made a sale, ever. Yes, people are clicking. But these clickers are not buying.
I’ve tried moving the placement of ads around the page and shifting from banner ads to link texts (which they say has higher clickthroughs) but I think the problem isn’t really so much on the format or the location of the ads. It lies with my site’s target market. Oftentimes, even though I think the item I’m promoting is really worth buying, my readers either 1) don’t agree, 2) don’t have the means to buy it online or 3) they have the means but they’re afraid to purchase online.
Most Filipinos still don’t have access to international credit cards (a requisite when transacting online). Of the ones that do, most have never used and have no intentions of using their credit cards to transact online for fear of the hackers, phishers, identity theft, etc.
Affiliate marketing will work if your target market has the means and the will to buy online. I don’t think that’s the case for most of us. Contextual advertising (Google AdSense and Yahoo Publisher Network) is still my traffic monetizing weapon of choice.
August 29th, 2005 at 12:23 PM
What happened to your Adwords-Affiliate campaign?
August 29th, 2005 at 12:31 PM
So-so. I’m promoting the same merchant on Adwords, Yahoo Search Marketing (Overture) and Ask Sponsored Listings so I’ll be writing a thorough review on those three soon. It’s a Filipino merchant and yes, I’m having a hard time collecting money from them hehe :)
August 30th, 2005 at 8:37 PM
I agree with you. Selling to Filipinos is hard. Yes, for most of us, we do not have the means to buy online and yes, we are hesitant.
September 2nd, 2005 at 2:27 PM
But then again, not all Filipinos fall into those categories. The jackpot is really the Filipino community abroad.
January 6th, 2006 at 6:31 AM
Me and my Filipina wife live in England. My home. We run a remittance and a dating company. I would really like to help Filipino’s out as much as i can but every time i source a product that i would like to sell here in the UK. The Philippine merchant tries to rip me off by trying to sell me his produce at western prices, making it unsellable for me.
I am looking right now for good quality books with fantastic photos about the Philippines also fantastic smelling soaps without skin whitening on the box, western women do not want to be white but tanned.
GOFF in UK
January 6th, 2006 at 8:56 AM
I guess you need a purchaser here on the ground.
January 9th, 2006 at 2:48 PM
I tend to agree with you. Those who expect thousands of dollars in revenue are up for a rude awakening. I too have yet to make the $50 minimum to get some sort of check. My affiliates include Filipino Friend Finder and Goggle Adsense.
Just for the record, I did not put up a website to make money. I just looked at these affiliate programs as a means to earn a few bucks. Money does not fall out of trees you know. So if I can get a few bucks from doing something I enjoy, why not?
September 24th, 2006 at 3:07 AM
It might have something to do with Filipinos but maybe only because the internet is really not in the mainstream of the Philippines for those that actually buy things online. I am from the US so I have no info on this. Europe has taken a little time to feel okay about buying online also…USA did at one time too.
Marc, I think you specifically have to look at your targeted audience. You basically have an SEO audience. They are privy to those topics. They are less likely to click on ads typically especially on an SEO site. Now, if the site is dating info site, furniture, clothes, dog, cat, or an infinite amount of other niche sites…you will definitely get clicks on aff links, adsense, etc. Get the traffic with the right audience and you will get clicks.
I am not one of the ones that makes thousands a day but I do make a living on the net.
December 28th, 2006 at 1:24 AM
Happy New Year To ALL